The Court of Appeal has brought some clarity to time limits for
appraisals under the Insurance Act.
In 56 King Inc. v. Aviva, the plaintiff commenced a
claim against its Insurer seeking coverage for damage to commercial
property arising from a windstorm, as well as damages for breach of
the Insurer's duty of good faith in handling the claim.
The Statement of Claim was issued in February 2014. Sometime in
late December or early January 2016, the Insurer admitted coverage.
Three weeks later, the Insurer elected an appraisal under Section
128 of the Insurance Act. The plaintiff rejected the
appraisal on the basis that it was too late and because the bad
faith claim could not proceed by appraisal. The Insurer brought a
motion to determine whether an appraisal should be ordered.
